Keep your other eye on the Eur.Jpy pair, fingers-crossed we could start seeing some decent trading opportunities in the coming sessions for buying set-ups when our 3 Ducks line up.
Profit targets, I’d be thinking just before the ¥126.63 area of resistance for a starter, if bulls can really get control I wouldn’t be surprised to see price take a run up to the second area of resistance at ¥127.27.
On the flip side, a move back lower to the ¥125.50 area would probably get me neutral on this pair and as always, this is not a trade recommendation.
I’m currently demo trading… Did anyone catch the sweet breakdown in GBPUSD today? I placed a limit order to sell the pound-dollar @1.4190 last night. It triggered hours later and went about 100 pips in profit by London close but gave about 30 pips back by NY close.
Yes, I did! Actually, I have been following it since Tuesday morning and made 9,94% profit on it with only a 1% risk (REAL account, not DEMO).
I made a total 161.26 pips, but I think I closed it out too soon because it still moved another 70+ pips before retracing a bit and it will probably still drop further on Thursday.
Anyway, it was still a good trade even though I missed out on the extra pips.
Here’s a recent trade I took with the 3-ducks system.
[ul]
[li]4H Above SMA, with SMA trending upward nicely = bullish
[/li][li]1H Above SMA = look for longs
[/li][li]1H Stoch pullback = opportunity to buy
[/li][li]5min = pullback to lows following London open was unable to gain traction. It then moved above SMA = potential Long confirmed, look for entry
[/li][/ul]
Once we made Higher Highs above the SMA on the 5min, I entered long with a stop below the lows. My target were the prior day’s highs for a 40pip target, with 20pips stop appx. (RR 2:1)
Note that with NFP tomorrow, I don’t think we will get an oversized move in EURUSD. Thus the most logical target was for the market to take out the stops above the prior day’s highs.
[B]Bullish Eur.Gbp,[/B] I’d love to see this pair take another leg higher up to the 0.8000 area [I](and higher)[/I] in the coming sessions.
Current price is about 0.7900, 4hr trend looks like it would favour bullish set-ups when all our Ducks line up in the same direction. Certainly one pair to keep in your watch list for the next few trading sessions.
Today is month end and quarter (Q1) end. Could see a lot of book balancing by the big boys, leading to choppy action. Not a day to push your luck. Grab your pips and put them in the bag, don’t look for oversized moves.
Tomorrow we have NFP, which will be watched closely following Yellen’s fireworks on Tuesday. I believe Andy likes to take NFP days off, this particular one I can see him playing golf already.
As far as I am concerned, I will not look for any more trades using 3-ducks before Monday.
[ul]
[li]4H Above SMA, with SMA trending upward nicely = bullish
[/li][li]1H Above SMA = look for longs
[/li][li]1H Stoch pullback = opportunity to buy
[/li][li]5min pullback, Higher Low and conclusive break above the SMA
[/li][li]Entry would be at 2052.50 with stops below 2047 (5.5pts)
[/li][li]Target to break the highs above 2063 (about 2R) and can hold partials for continuation
[/li][/ul]
Note the similarity between the previous two trades:
Strong move during news on Tuesday following Yellen’s remarks, shallow pullback on Wednesday which held above the News Day highs and continuation today.
Not trading this as I am done for the day, as per my previous post. Pips in the bag and all… Interested to see how it works out though, looking at it from the hard right edge.
I like your approach to trading, I have been using a similar system for several years, being a longer term trader I use the 200 moving average on the Daily, 4hr and 1hr charts, the 1hr chart is my trigger. Looking at the AUDUSD 1hr chart, this pair has been giving great entry signals over the last 10 weeks.
If I where to do some day trading, I do like your time frames
Andy - re this system - trading hours…Aside from avoiding the Asian session, do you have a rule of thumb re beginning/ending trading for the day? Or, is it dependent on news releases?
From what I’ve observed so far, the London session is frequently a prior day trend continuation, but there is often a fake out early morning…Trading generally seems to ebb off around the London close, even with NY active…
I’ve read many posts in this thread, and if this has been covered elsewhere…apologies!
I cashed in on a 1000 pip move to the upside early January in USDCAD, So riding this down for a 1000 pips will be sweet if we get there. And yes I have some nice gains in AUDUSD as well
